Xbox CEO lays out priorities in memo after major ‘reset’

Following major layoffs and the spinout of four studios, Xbox CEO Asha Sharma told employees the business must return to player and revenue growth by the end of fiscal 2027. The memo says Xbox also needs to bring profits back in line with industry averages, with every team accountable for the turnaround.

The memo signals a sharper focus on profitability and operational discipline after years of heavy investment and uneven returns in gaming. Xbox appears to be moving from expansion at scale toward a leaner model where studios and internal functions are judged more directly on growth contribution.